Miami Market Trend: Low-Rise Condos

[Account Closed]

I wanted to share some thoughts I have been developing for my clients regarding potential investment opportunities in older low-rise condos in Miami, Florida. Investing in older low-rise condos in Miami, Florida, is often overlooked in favor of newer developments; however, these properties offer unique advantages for investors.

LOWER ENTRY PRICE – Older low-rise condos provide investors with the opportunity to enter the Miami real estate market at a relatively lower price point compared to newer luxury developments. This affordability factor, combined with the potential for long-term appreciation and steady rental income, makes older low-rise condos a compelling investment choice for savvy investors looking to diversify their portfolio in Miami's real estate landscape.

BUILD EQUITY – Investing in older low-rise condos also allows investors to capitalize on potential renovation opportunities. With strategic upgrades and modernization efforts, these properties can be transformed into sought-after residences, thereby increasing their value and rental potential.

LOCATION, LOCATION, LOCATION – These Condos are often in prime locations in established neighborhoods, providing a sense of authenticity and charm that appeals to both residents and tourists.

DEMAND – The Miami Migration is still going strong as reported by the Miami Association of Realtors, “Migration into Southeast Florida remains strong. In 2023, 153,347 driver licenses were exchanged for a Florida license in the counties of Miami-Dade, Broward, Palm Beach, and Martin, up 8.3% from the level in 2022 (141,621). New York, New Jersey, and California continue to be the market’s top feeder states.” (MIAMI REALTORS.COM / January 2024)

I will continue to update this post with new developments and input from the community. Thanks in advance for your comments and thoughts.

[Kevin S.]

What price range are theses condos you referring to? I have looked away from condos because many of theses condos HOA fees are exorbitant, not to mention HOA rules and regulations when it comes to renting. Many do not allow renting for the first year. Can you share some numbers your clients are benefiting that will sway my interest towards condos? By numbers I meant by, say, condo appreciation is/was better than SFH, Cash flow is better than SFH, more demand than SFH, anything. Thanks in advance.